GeoVax tumbles on deep-discounted direct stock offering
20/08/2024 14:18
** Shares of GeoVax Labs GOVX.O tumble 26.2% premarket to
$5.28 after vaccine developer announces equity raise
** Co says entered agreement to sell 1.7 mln shares to a
certain institutional investor in registered direct offering for
$8.5 mln gross proceeds to fund working capital, general
purposes
** Sale price of $5 represents 30% discount to stock's last
close of $7.15
** Also, co to issue to the investor 5-yr warrants to buy up
to 1.7 mln additional shares in concurrent private placement
** GOVX has ~5.26 mln shares outstanding for roughly $38 mln
market cap, per LSEG
** GOVX's shares have more than tripled over the past week
as it and other micro-cap cos developing mpox vaccines have
surged as concerns over an outbreak of the virus rise
** Roth Capital acting as sole placement agent for GOVX
offering
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))